Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (275,000 units) $4,950,000 Cost of goods sold: Cost of goods manufactured (300,000 units) $4,050,000 Inventory, April 30 (25,000 units) (337,500) Total cost of goods sold (3,712,500) Gross profit $1,237,500 Selling and administrative expenses (275,000) Operating income $962,500 If the fixed manufacturing costs were $450,000 and the fixed selling and administrative expenses were $165,000, prepare an income statement according to the variable costing concept. Joplin Company Variable Costing Income Statement For the Month Ended April 30 $ Variable cost of goods sold: $ $ $ Fixed costs: $ $

JOPLIN COMPANY

                         VARIABLE COSTING INCOME STATEMENT

 Unit sold                                                                            275,000

Sales                                                                                 $4,950,000

Variable cost :

Cost of Goods sold( $4,050,000-337,500 - 450,000)  (3,262,500)

Selling and Administrative expense ( 275,000 - 165,000)  (110,000)

Contribution                                                                          1,577,500

Fixed Cost:

manufactured cost                                  450,000

Selling and administrative expenses     165,000                 615,000

Net Income                                                                             962,500

Explanation:

$625,250

Explanation:

JOPLIN COMPANY

Contribution Margin statement (Using variable costing approach)

Sales (a)275,000 units*$18 per unit4,950,000

Add:- Variable cost of goods manufactured300,000 units*$13.09 per unit 3,927,000

Variable cost of goods available for sale

Less closing inventory

25,000 units*13.09 per unit ($327,250)

$3,927,000-$327,250=$3,599,750

(b)

Gross contribution margin C= a-b (4,950,000-$3,599,750) $1,350,250

Less:-Variable selling expenses($275,000-$165,000) $110,000

Contribution margin ($1,350,250-$110,000) $1,240,250

Less:- Fixed costs

Manufacturing costs $450,000

Administrative expenses$165,000

Net Income($$1,240,250-$450,000 =$70,250-$165,000) $625,250

Explanation- Unit product cost under variable costing

$4,050,000-$450,000/275,000

=3,600,000/275,000

=13.09 per unit

​participate in networking opportunities that allow you to get to know potential clients, other entrepreneurs, influential people in your community, etc. focus on doing everything you can to cultivate posting word of mouth advertisin